Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) predicts that the semiconductor output value will reach $1.5 trillion in 2030, with AI and high-performance computing contributing more than half.

Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) released demonstration materials before the technology seminar held on Thursday, stating that the global semiconductor market is expected to exceed $1.5 trillion by 2030, surpassing the previous forecast of $1 trillion. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR stated that artificial intelligence and high-performance computing are expected to account for 55% of this $1.5 trillion market, followed by smartphones at 20% and automotive applications at 10%. This steep demand growth curve is rooted in the massive investments in AI infrastructure by leading global cloud service providers and data center operators. Major tech giants, after planning to build new data centers at the beginning of the year, quickly realized the severity of the computing power gap and during the first quarter earnings release period, significantly raised their annual capital expenditure budgets. To handle such a huge capital influx and address capacity bottlenecks thoroughly, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR is embarking on an unprecedented "capacity reshaping arms race" globally. Official disclosures show that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR has accelerated capacity expansion in 2025 and 2026 and plans to build up to nine new fabs and advanced packaging facilities within a single year in 2026. The chipmaker expects to increase production capacity for its most advanced 2-nanometer and next-generation A16 chips, with a compound annual growth rate of 70% from 2026 to 2028. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR also stated that the compound annual growth rate of its advanced packaging technology CoWoS (Chip-on-Wafer-on-Substrate) is expected to exceed 80% from 2022 to 2027, and CoWoS is a critical packaging technology widely used for AI chips, including those designed by NVIDIA Corporation (NVDA.US). Moreover, the company expects demand for AI accelerator wafers to grow 11-fold from 2022 to 2026. On a global scale, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's first fab in Arizona has begun production, equipment installation for the second fab is scheduled for the second half of 2026, construction of the third fab is in progress, and plans to start construction of the fourth fab and the first advanced packaging facility in the site this year. Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR expects output in Arizona to increase 1.8 times by 2026 compared to China Taiwan, with yield levels comparable to them; the company also mentioned that it has purchased a second large piece of land in Arizona for future expansion. In Japan, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR's first fab is currently producing 22-nanometer and 28-nanometer products, and due to strong market demands, the plan for the second fab has been upgraded to a 3-nanometer process. In Germany, the fab is currently under construction and progressing as planned, planning to offer 28-nanometer and 22-nanometer technologies, followed by 16-nanometer and 12-nanometer technologies.